Subsequent to the introduction of a temporary waiver of enterprise income tax applied to overseas investors making direct investments with profits derived from China (Tax Deferral), the Ministry of Finance, the State Administration of Taxation (SAT), the National Development and Reform Commission and the Ministry of Commerce jointly issued a tax circular Cai Shui [2018] No.102, Circular on Expanding the Scope of Application of the Policy of Provisional Deferral of Withholding Income Tax on Direct Investments Made by Foreign Investors Using Distributed Profits (关于扩大境外投资者以分配利润直接投资暂不征收预提所得税政策适用范围的通知), on September 29, 2018 and the SAT issued the SAT Announcement [2018] No.53, Announcement on Issues Relevant to Expanding the Scope of Application of the Policy of Provisional Deferral of Withholding Income Tax on Direct Investments Made by Foreign Investors Using Distributed Profits (关于扩大境外投资者以分配利润直接投资暂不征收预提所得税政策适用范围有关问题的公告) on October 29, 2018 (collectively, New Regulations), to further expand the application scope of the Tax Deferral, with retrospective effect from January 1, 2018.